VAT rate cut: who’s passing it on? And who’s keeping it to themselves?

By Aisling | August 3 2011 | 59 Comments


So the VAT rate fell from 13.5% to 9% on July 1 as part of the Jobs Initiative in an attempt to give the hospitality and tourism sectors a break.  It was expected that this rate cut would be passed on to the consumer - restaurants and hairdressers etc would be less expensive, thus stimulating trade and creating a win-win for everyone.  The Irish Hotels Federation and the Restaurants Association of Ireland have both urged their members to embrace this initiative and pass on the cuts. has the full details and here’s the list of those that got their VAT rate snipped:

Supplies of goods and services at the new 9% rate:

  • the supply of food and drink (excluding alcohol  and soft drinks) in the course of catering or by means of a vending machine
  • hot take-away food and hot drinks
  • hotel lettings, including guesthouses, caravan parks, camping sites etc
  • admissions to cinemas, theatres, certain musical performances, museums, art gallery exhibitions
  • amusement services of the kind normally supplied in fairgrounds or amusement park services
  • the provision of facilities for taking part in sporting activities by a person other than a non-profit making organisation
  • printed matter e.g. newspapers, brochures, leaflets, programmes, maps, catalogues, printed music (excluding books)
  • hairdressing services (Note: beauty treatments:- for example, facials, massages, nail treatments, tanning or sunbed services etc., remain liable at the 13.5% rate).

Unfortunately it wasn’t a legal requirement that the decrease be passed on to customers – and as a result it seems as though very few businesses have cut their prices.

Who have you noticed cutting their prices (Peter Mark gets my shout out here) – and who have you noticed definitely hasn’t?

If a business hasn’t cut their prices does this put you off going to them?  Any restaurants you’d recommend on the basis of this – how about cinema tickets, or a late night one and one from the chipper?

Tell us in the comments!

On a Budget ,

59 Replies to "VAT rate cut: who’s passing it on? And who’s keeping it to themselves?"

  • Kirstie says:

    I must give a shoutout to Dyflin (who I work for) because they reduced the price of all their mags – prudence, house and home and confetti – in line with the VAT reduction.

  • LauraLou says:

    Mc donalds has… ha shows where my head is at! I was very annoyed Trim castle hotel didnt, and they were very pushy for me to book at room, at €110 a night! Not a chance!! Cinema hasnt.. its shocking, its €10 in vue in liffy valley my local cinema, then me an my bf went to tullamore cinema and it was €6.20 .. its ridiculous!!

  • Kirstie says:

    Also StorBOCKS has, noticed that the last time I bought a latte from them (to be pronounced late)

    actually it was an americano,I just wanted to say late. And cup of chino.

  • Kirstie says:

    am sure they have also reduced the price of their yhammy mhaffans

  • soph & glory says:

    The Omniplex Cinema in Santry definately has! Was pleasently surprised!

  • lainey316 says:

    My hairdresser was €58 this time down from €60 last time.

  • blondie says:

    Kirstie…don’t forget the price of an EXpresso…argh that one drives me mad!
    ooh I’m off to Storbocks now (or Bucky’s as Ross O’Carroll Kelly calls it) the VAT drop only gives me more excuses to go to the place. Will try to resist the lahvley maahhfins.

  • Lenuska says:

    I work in accountancy office and to be honest the Vat reduction is such a small amount in the end. I noticed that some Irish magazines like U taken down the price and place where I go sometimes for lunch doesnt charge 10 Euro but 9.60 instead (or something like that) – you would hardly take the change back anyway. I see so many businesses strugling, if this small difference help them to pay of some loans that most of them have or hire extra part timer or keep going at all, I will happily keep paying the same price. Now I am talking mostly about small local businesses not about overpriced hotel chains etc.

  • blondie says:

    Have only clearly noticed this in Peter Marks & Starbucks. But then again they are advertising it clearly & I haven’t gotten out much lately! Oh and a couple of local hairdressers too. Fair play to them. Was too hungover & dying for my chips to even check in the local chipper the other nite. In that state I would have paid anything :)

  • Kirstie says:

    Oh EXPresso is my favourite pic me up

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